New South Wales Consolidated Acts

CO-OPERATIVES ACT 1992 - SECT 314

314 Transfer of engagements by direction of Registrar

(cf Vic Act s 305)

(1) The Registrar may, with the approval of the Council, direct a co-operative:

(a) to transfer its engagements to a co-operative approved by the Registrar, and

(b) within a period specified by the Registrar when giving the direction or within such further period as the Registrar may allow, to enter into an agreement approved by the Registrar to give effect to the transfer of engagements directed.

(2) The Registrar is not to give such a direction to a co-operative unless the necessary grounds exist for the giving of the direction, as referred to in section 343.

(3) The transfer of engagements must make provision in a manner approved by the Registrar for those members of the transferor co-operative who wish to do so to become members of the transferee co-operative.

(4) If a co-operative fails to comply with a direction under this section, the Registrar may elect to treat the failure as the necessary grounds for the winding up of the co-operative on a certificate of the Registrar or for the appointing of an administrator of the co-operative, and is to notify the co-operative accordingly.

(5) The Registrar may revoke a direction under this section at any time up until the co-operative has agreed pursuant to the direction to transfer its engagements.

(6) A transfer of engagements directed under this section takes effect on a day notified by the Registrar in the Gazette.

(7) An officer of a co-operative who:

(a) fails to take all reasonable steps to secure compliance by the co-operative with a direction given under this section, or

(b) by a wilful act or omission is the cause of a failure by the co-operative to comply with such a direction,

is guilty of an offence.

Maximum penalty: 20 penalty units.